The Federal Government extended the tax on crude oil exports and renewed the diesel subsidy to mitigate geopolitical turbulence and safeguard national supply.
To protect the Brazilian economy amid uncertainties stemming from geopolitical conflicts in the international energy market, the Federal Government and the National Congress extended two key fuel sector regulations. The decisions were officially published in the Official Gazette of the Union.
Among the confirmed actions is a 60‑day extension of Provisional Measure No. 1,391/2026, a mechanism that enables financial subsidies for diesel fuel used in road transport. Maintaining the rule ensures the continuity of policies to ease operating costs in the country.
Additionally, the government kept the export tax on unrefined oil, establishing a fiscal protection and supply network for the domestic market in the coming months.
Diesel Subsidy Mechanisms
The extension of MP 1,391/2026 was formalized by the President of the National Congress Board, Senator Davi Alcolumbre. Originally issued in September, the proposal allows the Executive Branch to pay subsidies to fuel producers and importers.
To receive the financial compensation, economic agents must be properly registered with the National Agency of Petroleum, Natural Gas and Biofuels (ANP). Participation in the model is voluntary and requires compliance with specific operational rules.
Participating companies must fully pass the subsidy onto final price tables, itemizing the discount amount on electronic invoices issued for each commercial transaction.
The measures aim to:
Ensure national fuel supply amid supply instability caused by geopolitical conflicts.
Crude Oil Taxation and Fiscal Management
Within foreign trade, the Executive Committee for Management of the Foreign Trade Chamber (Gecex) issued Gecex Resolution No. 977, extending the 12% tax rate on international crude oil sales until December 31, 2026.
The Ministry of Finance is responsible for setting the financial limits of the diesel subsidy. Estimates from the ministry point to a monthly disbursement of R$ 492.08 million, assuming an estimated discount of R$ 0.10 per liter sold.
By September, the government had already authorized an extraordinary credit of more than R$ 6.6 billion to fund the measure, allocating the largest portion to freight and passenger transport, in addition to previously approved transfers.
The updated legislation also includes tax adjustments related to time‑deposit accounts without certificate issuance, aligning tax collection with the guidelines applied to Bank Deposit Certificates (CDB).
Next steps and sector monitoring
The execution of payments and the oversight of the measures depend on budget release and the active role of the ANP in verifying the prices practiced at the distributor’s end of the chain.
With the extension of the regulatory package, Brazil seeks to ensure the stability of road transport supply flows and contain inflationary impacts derived from global commodity price quotations.